AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)

ISLAMABAD: The Tax-to-Gross Domestic Product (GDP) ratio drastically decreased from 9.22 percent in 2021-22 to 8.77 percent during 2023-24.

The Federal Board of Revenue (FBR) report revealed that the tax-to-GDP ratio is a key metric for assessing a country’s tax revenue in relation to its GDP size.

It offers insight into the general trajectory of tax policy and allows for global comparisons of tax revenues relative to economic scales. This ratio also reflects how effectively a nation’s government allocates its economic resources through taxation.

Islamabad striving for 13.5pc tax-to-GDP ratio, US told

Typically, developed nations exhibit higher tax-to-GDP ratios compared to developing countries. Higher tax revenues enable a country to invest more in essential areas such as infrastructure, healthcare, and education.

According to the World Bank, tax revenues that exceed 15 percent of a country’s GDP are crucial for fostering economic growth and reducing poverty.

Over the past few years, the FBR has implemented various policy and enforcement measures. These initiatives, coupled with the dedicated efforts of FBR’s top management, have begun to yield significant results, manifesting as robust growth in tax revenues. There was a notable 30 percent increase in FBR tax revenues during 2023-24, which improved the Tax-to-GDP Ratio from 8.54 percent to 8.77 percent.

With the continued growth in tax revenues, it is anticipated that the Tax-to-GDP ratio will further improve in the coming years.

Over the past four years, the proportion of direct taxes to GDP has seen a positive trend, increasing from 3.10 percent in 2020-21 to 4.27 percent in 2023-24. This shift towards a greater reliance on direct taxes, coupled with a decreasing share of indirect taxes, is a promising development for Pakistan’s tax structure, FBR report added.

Copyright Business Recorder, 2024

Comments

Comments are closed.

Aamir Nov 08, 2024 08:23am
The govt should cut expenses accordingly as economy is finished
thumb_up Recommended (0)
SAd Nov 08, 2024 09:45am
I wonder how much bias can you have. How can you compare to 23 with 21 by ignoring 22 completely in the heading. This is how you spread propaganda and create false narrative.
thumb_up Recommended (0)
MZI Nov 08, 2024 06:50pm
The headline does not align with the body of the news. How do you manage to do this? "which improved the Tax-to-GDP Ratio from 8.54 percent to 8.77 percent"
thumb_up Recommended (0)